Like most people, you probably don’t know much about the ins and outs of bankruptcy unless you have actually filed. Whether you are considering filing for bankruptcy in Springfield or just looking to become better informed, here are some answers to some of the more common questions about the bankruptcy process:
What is a petition?
The petition is the document you fill out to make your official filing with the court. It is a document that outlines all of the details of your debts, income and wages, fund accounts, and assets. This document must be completed accurately and honestly to ensure your best chance at a successful discharge.
What is the means test?
The means test is used to evaluate your eligibility for a Chapter 7 filing. The test compares your income against the median income of the state, in which incomes less than the median income level qualify for Chapter 7 cases.
What is an automatic stay?
The automatic stay is a court order that is submitted to your creditors informing them of your case filing and prohibiting them from further collections. While the automatic stay is active your creditors cannot make attempts to collect on the debt from you, and any payments must be mediated by the trustee.
What is the meeting of creditors?
The meeting of creditors is a required, administrative hearing that allows for the trustee to ask you questions about your debts, income, and assets. Any creditor that files a proof of claim on your debt may attend the meeting as well.
Who is the trustee?
The trustee is an impartial monitor of your bankruptcy case. They determine whether any nonexempt assets will be liquidated for the benefit of the creditor, as well as disperse any payments to creditors on your behalf.